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March 30, 2020

Tag: corporations law

Corporate buy-sell agreements: What are they and do I need one?

I am often asked to help clients prepare the bylaws for their corporation after they have filed the articles of incorporation, obtained an employer identification number and opened the bank account. The discussion usually is directed toward maintaining control of the corporation; how can the client prevent other stockholders from selling or transferring their shares in the corporation to others in the future? Although it is possible to address this issue in the bylaws, the more appropriate vehicle for stock sale restrictions is a buy-sell agreement.